Classification and Test Audit Insight: News and Information for the California Underwriting and Audit Community

Clerical Office Payroll

In this edition:  Assigning payroll of shared clerical staff when more than one classification   specifically includes clerical office employees

The WCIRB recently received a  question regarding a business that is a combination dental office and medical clinic. Most of the employees are assigned to either Classification 8839, Dentists and Dental Surgeons – all employees – including Clerical Office Employees,or Classification 8834, Physicians-all employees- including Clerical Office Employees. The billing, administration and clerical office functions are performed by a common group of employees. Which classification should be assigned to the shared clerical staff?

One common mistake is for the clerical office employees to be misclassified by assigning them to the classification with the highest rate; however, the California Workers’ Compensation Uniform Statistical Reporting Plan -1995(USRP) requires that the payroll be assigned to the classification that generates the most payroll. See excerpt below of USRP, Part 3, Section III, Rule 4a(2).

(2) When an employer’s clerical office employees are engaged in operations incidental to other operations performed by the employer and such other operations are assigned to two or more classifications, one or more of which includes clerical office employees and one or more of which does not include clerical office employees, the payroll of the clerical office employees shall be assigned in  accordance with the following:

(c) If the sum of the payroll generated by the classifications that include clerical office employees equals or exceeds the sum of the payroll generated by the classifications that do not include clerical office employees, then the payroll of the clerical office employees shall be assigned to the classification that includes clerical office employees.When there is more than one such classification, the clerical office employees shall be assigned to the one that generates the most payroll.

In the combination dental office and medical clinic example, it is necessary to determine which classification generates the most payroll in order to determine which classification applies to the shared billing, administration and clerical employees.

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